Today, we live in a world of loyalty schemes. If you shop at any major retailer there is a pretty good chance that you have signed up to their loyalty scheme and after you spend a certain amount of dollars with them, you get a discount or some other reward for your next purchase. Some of the loyalty schemes (especially around gaming) invite the most loyal and regular customers into the store for a two-hour huge sales event that is especially designed for these types of customers.

So why isn’t this happening in the music business.

Let’s start with the live business.

Why is that the regular customers of the artists are not courted and rewarded. These are the people who purchase the super deluxe packaging. These are the people who purchase meet and greets on a regular basis.

For some reason these people cannot be given discount tickets to the shows or given an extra ticket to bring a friend who might not otherwise choose to attend.

A regular customer/fan is much more valuable than an inactive one.

However artists are clueless to these people as they have always relied on the labels to promote them and bring fans in. In addition, the recorded business has always relied on the transactions to take place between intermediaries.

Therefore, the data sits with these sellers. No wonder the recording business is in a state of flux.

Let’s use Dream Theater and Avenged Sevenfold as an example (solely because they had Super Deluxe packs selling for over $100).

For example, iTunes and Amazon would have the data on the fans that purchased their new album, along with a history of other purchases.

I would assume that Roadrunner would have the data on the fans that purchased the Super Deluxe packages from Dream Theater and Warner Bros would have the data on the fans that purchased the Treasure box from Avenged Sevenfold.

Live Nation or Ticketmaster/Ticketec would have the data on the fans that purchased tickets to the live shows.

Spotify and Pandora have the data on which fans streamed the new album and which fans continually stream Dream Theater And Avenged Sevenfold songs.

Musicmetrics put out reports that show various internet behaviours of fans for a lot of bands especially around BitTorrents.

Soundscan shows the units moved in relation to sales.

YouTube has view count metrics.

Now, imagine if Dream Theater or Avenged Sevenfold had the above information. Would they know what to do with it? Imagine if they had all that information and they see a trend of certain fans appearing as buyers of music and tickets. Those same fans are constantly streaming their songs. Those same fans are always appearing on Facebook and Twitter. Those same fans are buying merchandise from the bands own web store.

It is those fans that need to be rewarded. They are a bands best asset.

A lot of the independent bands are collating stats like these. Protest The Hero recently rewarded fans that got other fans to contribute to their funding campaign with additional perks and free passes into live concerts.

Why can’t the label backed bands reward their loyal customers? Everything is full price when it comes to music.

In relation to the live show, once upon a time everyone could attend as ticket prices where low. Then society started changing and suddenly a new market started to appear that charged a higher fee for a Section A pass and less for a Section B. So of course, a battle started for the best seats.

Then people who didn’t generally like rock music wanted to say that they went to the next Rolling Stones concert or the next Kiss show or the next Bon Jovi show and claim that they had front row seats.

Then Section A passes started to be tiered, with names like Platinum, Gold, Silver and Bronze. Each tier came with a ridiculous price tag.

The hard-core fans started to dig even deeper.

To prove my point, I have a banker friend who has seen Bon Jovi once and paid $1200 for the Platinum ticket a few years back.

I have a work colleague who has seen Bon Jovi over 40 times in various parts of the world. She even planned her US trip to take in cities that Bon Jovi was playing at and got tickets to all of the shows along with meet and greets.

I have seen Bon Jovi on two occasions and I am taking my family to see the band in 10 days’ time in Sydney. That makes it 3 for me.

So the banker friend has outlayed $1200 for a Platinum ticket. He is not going to watch the current show because he has seen Bon Jovi once and it was cool to say that he has seen Bon Jovi in his lifetime.

The crazed work colleague has outlayed over $20,000 on Bon Jovi tickets, purchasing various meet and greets around the world. That same work colleague purchased Bronze tickets for the upcoming Sydney show. She is back again.

Me personally, I have outlayed close to $1400 on tickets to three concerts. The current Sydney tickets cost me $1100 for 4.

So has the band rewarded my work colleague. She is one of many fans that are super loyal to the band and yet they still have to queue up online and fight for premium tickets, only to find out that only a small amount got allocated to the selling agency and the rest are given to the secondary market. Where is the bands loyalty to these kind of fans?

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One thought on “Where Is The Loyalty Program in the Music Business?”

Todd Dugassays:

I purchased the domain name MusicRewards.com back in 2003 for just this reason. I still believe there is an opportunity to for an interactive music loyalty program similar to Swag Bucks or the old MyCokeRewards.com program.